It’s Q2 2023, and Latin America is seeing a wave of legal developments affecting the workforce solutions ecosystem. In Colombia, labor reform proposals have been proposed that would limit outsourcing, temporary work, and fixed-term contracts. On March 16, the national government put forth a bill that would guarantee and improve the rights of Colombian workers. The bill would mandate that all employment contracts be of indefinite duration, limiting the use of fixed-term contracts to very specialized and specific tasks. Additionally, if a renewal notice is not served, and a fixed-term worker continues to be employed, the contract will automatically become one of indefinite duration. The proposed reforms would also impose a prohibition against terminating such employment contracts when the project or need that led to the hiring is still present. The reforms would also introduce new limits on the duration of assignments for the hire of employees through temporary work agencies, reducing the duration to a maximum of six months. It would also remove the existing exception for large and medium sized companies to outsource activities that are not part of the core business activities of the company, and limit the hiring of independent contractors for the development of activities of the core business or main activity of the company through services agreements.
Meanwhile, in Peru, the Third Constitutional Chamber